KERN COUNTY HOSPITAL AUTHORITY DEPARTMENT OF HUMAN RESOURCES. Request for Proposal to Provide: Retirement plan design and administration

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1 KERN COUNTY HOSPITAL AUTHORITY DEPARTMENT OF HUMAN RESOURCES Request for Proposal to Provide: Retirement plan design and administration The Kern County Hospital Authority ( KCHA ), which owns and operates Kern Medical Center ( Kern Medical ) is seeking qualified consultants to develop a retirement plan and administer the plan. Proposers are specifically directed not to contact any Kern Medical personnel, other than the Contact Person indicated below, for any purpose related to this RFP. Unauthorized contact of any Kern Medical personnel may be cause for rejection of a vendor s proposal. All inquiries concerning this RFP should be directed to the following Contact Person: Projected Timetable Kern Medical Center Department of Human Resources Name: Lori Ambrose Title: Director of Human Resources Address: 1700 Mt. Vernon Avenue, Bakersfield, CA Lori.Ambrose@kernmedical.com Telephone (661) The following dates are set forth for information and planning purposes only. These dates may be changed by KCHA upon notice to prospective proposers: Issuance Date September 7, 2017 Questions/Comments September 14, 2017 Proposal Due Date October 5, 2017 Proposal Due Time By 5:30 p.m. Responses received after the above time will not be considered. Proposers are solely responsible for ensuring timely receipt of their Proposals. i

2 TABLE OF CONTENTS I. GENERAL INFORMATION Page A. Project Background 1 B. Services Required of Successful Proposer 1 C. Services Provided by KCHA 1 D. Selection Process 1 E. Solicitation Caveat 3 F. Time 4 G. Standard KCHA Agreement 4 H. Insurance Requirements 4 I. Modifications to Scope of Work 5 J. News Releases 5 K Compensation 5 L. Statutes and Rules 5 M Background Review 5 N. Organizational Conflict of Interest 5 II. PROPOSAL INFORMATION AND REQUIREMENTS A. General Instructions 6 B. Business Address 6 C. Corrections and Addenda 6 D. Proposal Format and Contents 7 E. Post RFP Issuance 12 F. Proposal Submission 12 G. Withdrawal and Submission of Modified Proposal 13 H. Disposition of Proposals and Proprietary Data 13 SCOPE OF WORK SPECIFICATIONS AND REQUIREMENTS STANDARD KCHA MASTER TERMS & CONDITIONS Exhibit A Exhibit B ii

3 I. GENERAL INFORMATION A. Project Background Part 1 Part 2 KCHA is looking for a vendor to review KCHA s current retirement plan and contemplate a new retirement plan, as it relates to impact on benefits, focusing primarily on current benefit levels for employees and cost of plan to both employer and employees. KCHA s expectation is for the Successful Proposer to evaluate alternatives to the current KCERA pension plan that will ultimately result in lower costs to KCHA and its employees, while providing similar benefits. KCHA s intent is for the approved retirement solution to become effective for new employees only, who begin employment with KCHA on or after July 1, No migration of existing pension plan participants is planned. KCHA is looking for a vendor to provide plan administrative services to retirement plan participants hired on or after July 1, B. Services Required of Successful Proposer KCHA has developed the attached Exhibit A which fully describes the scope of work and services required, deliverables, benchmark requirements, and our anticipated timeline for the start and completion of this project. Proposer will be expected to review the Exhibit to understand the expected outcome, what the desired goals and objectives are, what specific problems and challenges need to be solved in order to achieve the required end result. Proposer will indicate whether they want to be considered for one part or both parts of the RFP. C. Services Provided by KCHA KCHA will provide a Contact Person as a primary contact, who will arrange for staff assistance as may be required; provide whatever information as may be available; and be available to meet and discuss project requirements and development at key times in the process. D. Selection Process 1. All Proposals received by the specified deadline will be reviewed. After the initial scoring, the selection committee may select those firms deemed most qualified for this project for further evaluation. The selection committee may select proposers for one or both parts of the RFP. Interviews of these selected firms may be conducted as part of the final selection process. Proposers are 1

4 advised that KCHA, at its option, may award a contract strictly on the basis of the initial Proposals, and not create a short list of Proposals for further consideration. 2. The following is a list of general criteria that may be used by the selection committee in determining its recommendation to the Board of Governors. Please note that the selection committee may consider any information they deem relevant in determining a recommendation to the Board of Governors, and may give each of the criteria considered as little or as much weight as they consider appropriate. a. Proposer s understanding of the RFP requirements and end result. b. Proposer s proposed approach to tasks. c. Proposer s experience in similar projects. d. Fee or proposed rates. e. Estimated completion date(s) or proposer s specific understanding of any legal time-frame mandates that may be required by law, statute or KCHA department. f. Client references. g. Qualifications of Proposer s staff for the project. h. Any other factors KCHA deems relevant. 3. KCHA reserves the right to reject any and all Proposals and to waive informalities and irregularities in any Proposals received. Absence of required information may render a Proposal non-responsive, in the sole discretion of KCHA, resulting in rejection of the Proposal. 4. KCHA may, during the evaluation process, request from any Proposer, additional information which the KCHA deems necessary to determine the Proposer s ability to perform the required services. If such information is requested, the Proposer shall be permitted five (5) working days to submit the information requested. 5. An error in the Proposal may cause the rejection of that Proposal; however, KCHA may, in its sole discretion, retain the Proposal and make any corrections it deems appropriate. In determining if a correction will be made, KCHA will consider the conformance of the Proposal to the format and content required by the RFP, and any unusual complexity of the format and content required by the RFP. If the Proposer s intent is clearly established based on review of the complete Proposal submittal, KCHA may, at its sole option, correct an error based on that established content. KCHA may also correct obvious clerical errors. KCHA may also request clarification from a Proposer on any item in a Proposal that KCHA believes to be in error, and make corrections accordingly. 2

5 6. KCHA reserves the right to select the Proposal which in its sole judgment best meets the needs of KCHA. The recommendation by the KCHA selection committee, and the final selection of Proposer(s) by the CEO or Board of Governors, shall be based on any information and criteria the CEO and Board of Governors consider relevant, which may include criteria not listed in paragraph 2 above. The lowest proposed cost is not the sole criterion for recommending contract award. 7. All Proposers responding to this RFP will be notified of their selection or nonselection in writing after the selection committee has completed the selection process. 8. KCHA employees will not participate in the selection process when those employees have a relationship with a person or business entity submitting a Proposal which would subject those employees to the prohibition of Section of the Government Code. Any person or business entity submitting a Proposal who has such a relationship with a KCHA employee who may be involved in the selection process shall advise the Contact Person of the name of the KCHA employee in the Proposal. 9. Any person or business entity which engages in practices which might result in unlawful activity relating to the selection process including, but not limited to, kickbacks or other unlawful consideration paid to KCHA employees, will be disqualified from the selection process. 10. The process, procedures and evaluation criteria used by KCHA staff and the selection committee in developing and issuing this RFP and evaluating the Proposals received for purposes of making a recommendation to the CEO and/or Board of Governors shall be determined in the sole discretion of the KCHA. Potential Proposers shall have no rights whatsoever regarding the processes and procedures used by KCHA relating to this RFP or the manner in which a Proposer is selected by either the selection committee or the CEO and/or Board of Governors, provided their decisions are not arbitrary and capricious, and there is some reasonable basis for the selection(s) made. E. Solicitation Caveat The issuance of this solicitation does not constitute an award commitment on the part of the KCHA, and KCHA shall not pay for costs incurred in the preparation or submission of Proposals. KCHA reserves the right to reject any or all Proposals or portions thereof if KCHA determines that it is in the best interest of the KCHA to do so. Failure to furnish all information requested or to follow the format requested herein, or the submission of false information, may disqualify the proposer, in the sole discretion of KCHA. KCHA may waive any deviation in a Proposal. KCHA s 3

6 F. Time waiver of a deviation shall in no way modify the RFP requirements nor excuse the successful proposer from full compliance with any resultant agreement requirements or obligations. Time and the time limits stated in this RFP are of the essence of this Request for Proposal. G. Standard KCHA Master Terms & Conditions No agreement with KCHA is in effect until a contract has been signed by both parties. Attached to this RFP as Exhibit "B" is the standard KCHA Master Terms & Conditions which are in substantially the form the successful proposer will be expected to sign. The final agreement may include the contents of the RFP, any addenda to this RFP, portions of the successful Proposer's Proposal and any other modifications determined by KCHA to be necessary prior to its execution by the parties. The standard KCHA master terms and conditions included in this RFP is for informational purposes and should not be returned with a Proposal; however, the Proposal shall include a statement that the Proposer has reviewed the standard KCHA master terms and conditions and either i) will agree to and accept the master terms and conditions contained therein if selected, or ii) indicate those specific provisions of the standard KCHA master terms and conditions to which the Proposer takes exception and why. Raising of significant exceptions in a Proposal, as determined in the sole discretion of KCHA, may be cause for rejection of the Consultant s Proposal. The selected Consultant will be required to execute an agreement with KCHA for the services requested within 15 days of the award. If agreement on the terms and conditions of the contract that are acceptable to KCHA including, but not limited to, compensation, cannot be achieved within that timeframe, KCHA reserves the right to continue negotiations or to award the bid to another Consultant and begin negotiations with that Consultant. Consultant must identify and provide contact information in their Proposal of the individual within their organization who is authorized to negotiate the terms and conditions of any agreement between Consultant and KCHA. H. Insurance Requirements KCHA has developed the attached Exhibit B which fully describes the insurance requirements KCHA expects Consultant(s) to secure and maintain while contracted with KCHA. 4

7 I. Modifications to Scope of Work In the event that sufficient funds do not become available to complete all the services identified in this RFP, the scope of services may be amended, as determined in the sole discretion of KCHA. KCHA may also, from time-to-time, request changes in and/or additions to the services to be provided by the successful proposer. Such changes, including any increase or decrease in compensation, which are mutually agreed upon by and between KCHA and the successful proposer, shall be incorporated into the contract prior to execution of the contract, and by written amendments thereto after execution. J. News Releases News releases pertaining to any award resulting from this RFP may not be made without prior written approval of the CEO of Kern Medical. K. Compensation Compensation shall be agreed upon by KCHA and Consultant to be included in the final agreement for services. L. Statutes and Rules The terms and conditions of this RFP, and the resulting consulting services and activities performed by the successful proposer, shall conform to all applicable statutes, rules and regulations of the federal government, the State of California and the County of Kern. M. Background Review KCHA reserves the right to conduct a background inquiry of each Proposer that may include collection of appropriate criminal history information, contractual and business associations and practices, employment histories, reputation in the business community and financial condition. By submitting a Proposal to KCHA, the Proposer consents to such an inquiry and agrees to make available to KCHA such books and records KCHA deems necessary to conduct the review. N. Organizational Conflict of Interest Consultant warrants, to the best of its knowledge, that neither Consultant nor its officers, agents or employees presently has any consulting or contractual arrangement with any firm or organization that would give rise to an organizational conflict of interest with respect to the work to be performed under this Agreement. Neither Consultant nor its officers, agents or employees shall enter into any contractual arrangement that would give rise to any potential conflict of interest, without first obtaining KCHA s prior written approval before entering the 5

8 agreement. If any organizational conflict of interest is discovered by Consultant relating to this Agreement, Consultant shall immediately notify KCHA, and attempt to present a suitable mitigation plan. KCHA may, at its sole discretion, terminate this agreement in the event that Consultant has any actual or potential organizational conflict of interest. As used in this paragraph, Organization conflict of interest means any relationship whereby Consultant has present or planned interests related to the work to be performed under this Agreement which: (1) May diminish its capacity to give impartial, technically sound, objective assistance and advice or may otherwise result in a biased work product, or (2) may result in its being given an unfair advantage. II. PROPOSAL INFORMATION AND REQUIREMENTS A. General Instructions To receive consideration, Proposals shall be made in accordance with the following general instructions: 1. The completed Proposal shall be without alterations or erasures. Errors may be crossed out and corrections printed in ink or typed adjacent, and must be initialed in ink by an authorized representative of the proposer. 2. Only ed Proposals will be considered. 3. The submission of a Proposal shall be an indication that the proposer has investigated and satisfied him/herself as to the selection process to be used by KCHA, the conditions to be encountered, the character, quality and scope of the work to be performed, and the requirements of KCHA. 4. All Proposals shall remain firm for three hundred and sixty-five (365) days from the Proposal submission deadline. B. Business Address Proposers shall furnish their business street, mailing, and address. Any communication directed to the Proposer will be through their address. C. Corrections and Addenda If a Proposer discovers any ambiguity, conflict, discrepancy, omission, or other error in this RFP, the Proposer shall immediately notify the Contact Person of such error in writing and request clarification or modification of the document. Modifications will be made by addenda as indicated below to all parties in receipt of this RFP. 6

9 If a Proposer fails to notify the Contact Person prior to the date fixed for submission of Proposals of a known error in the RFP, or an error that reasonably should have been known, the Proposer shall submit a Proposal at their own risk, and if the Proposer is awarded a contract they shall not be entitled to additional compensation or time by reason of the error or its subsequent correction. Addenda issued by KCHA interpreting or changing any of the items in this RFP, including all modifications thereof, shall be incorporated in the Proposal. The Proposer shall sign and date the Addenda Cover Sheet and submit same with the Proposal. Any oral communication by KCHA s designated Contact Person or any other KCHA staff member concerning this RFP is not binding on KCHA and shall in no way modify this RFP or the obligations of KCHA or any proposers. D. Proposal Format and Contents For ease of review and to facilitate evaluation, the Proposals for this project should be organized and presented in the order requested as follows: 1. Cover Page: Include a letter of introduction signed by an authorized representative of the firm containing the following language: The undersigned certifies that all statements in the Proposal are true and correct; and that any material false statement contained in this proposal shall entitle KCHA to pursue any and all remedies authorized by law and/or declare any contract made as a result thereof, to be void. Indicate the name of the firm and the RFP project title clearly on your cover sheet. 2. Corporate/Agency Profile: Provide specific information concerning the firm in this section, including all of the following: The legal name, address and telephone number of your company The type of entity (sole proprietorship, partnership, or corporation and whether public or private). The name and telephone number of the person(s) in your company authorized to execute the proposed contract. If two or more firms are involved in a joint venture or association, the Proposal(s) should clearly delineate the respective areas of authority and responsibility of each party. 7

10 All parties signing the Agreement with KCHA shall be individually liable for the completion of the entire project even when the areas of responsibility under the terms of the joint venture or association are limited. 3. Qualifications and Experience: This section is designed to establish the Proposer as an entity with the ability and experience to operate the program, or provide the services, as specified in the RFP. Provide specific information in this section concerning the firm's experience in the services specified in this RFP, preferably within the State of California. Include all of the following: The number of employees involved in providing services Number of years providing services Financial statements (balance sheet and Dun & Bradstreet credit rating acceptable) Examples of completed projects Documentation of Satisfactory Past Performance/References Provide a minimum of three (3) reference letters from public agencies for similar services rendered (must be within the last six (6) months on the reference company s letterhead). Each reference shall include a current point of contact and a phone number. Each reference letter must have all of the following information: Date of the original contract; End date of the contract; Services rendered; Names, titles, addresses, and current telephone numbers of contact persons within client agencies for whom the services have been provided. 4. Credentials/Resumes: Of critical importance is the composition of the team proposed to provide services on this project. Credentials and resumes of the person(s) responsible for administering or providing the services must be provided. Include a statement of qualifications and resumes/backgrounds of key personnel assigned to the project, including training certifications of professional and non-professional personnel. 8

11 Proposer shall specifically provide the following information on all management, supervisory and other key employees who will be providing service: a. Name, address and phone number b. Description of education c. General experience d. Experience or education related to the RFP project e. Letters of reference, if available List consultant firms, if any, that you plan to use for this project and their relevant experience. 4a. Subcontractors: KCHA will consider proposed agreements that involve the firm s use of subcontractors. List all subcontractors you plan to use for this project and their relevant experience. Such subcontractors will be acting as independent contractors and not as agents of KCHA. 5. Project Approach, Work Schedule, Transition Plan and Technology Requirements: Provide a detailed description of the methodology proposed to perform all required services. The project approach should include specific details with regard to how and what services, training, installation, etc. are included in your response to KCHA. Include any additional information and options that you feel may be advantageous to KCHA. Label options clearly and specify all costs and fees associated with each option. Include specific details with regard to a work schedule/transition plan which contains an aggressive schedule that will complete, or start up, the project beginning on the effective date of the completed agreement. This schedule should contain specific milestones and dates of completion which will be used to set schedules. Also identify the extent of KCHA personnel involvement deemed necessary, including key decision points at each stage of the project. Specify all software and computer technology that is anticipated to be used in rendering the services. If the Proposal includes the purchase of any software by KCHA, provide a copy of any software license agreements that KCHA would be required to execute. Do not include brochures and advertisements in your Proposal unless the content they provide is identified and included specifically in your description of the methodology and/or approach to the services you are proposing to provide KCHA. 9

12 6. Cost of Service: The Proposal shall clearly state all of the costs associated with the project, broken down by category of products and services, and all on-going costs for recommended/required products/services such as maintenance. As a general rule, KCHA prefers a set price or hourly rate for the entire term of any contract. The project costs should include all expenses that will be charged to KCHA including but not limited to costs for shipping, insurance, communications, documentation reproduction, travel, taxes, etc. Failure to not clearly identify all costs associated with the Proposal may be cause for rejection of the Consultant s Proposal. 7. Insurance: The selected proposer will be required to obtain, as a condition of the award of a contract, and the Proposal shall state that the proposer will obtain the insurance as required in the attached agreement. All insurance shall be issued consistent with the final Agreement with KCHA. Insurance coverage at a minimum must be provided by a company or companies listed in the current "Best's Key Rating Guide" publication with a minimum of A-, VII rating; or in special circumstances, as pre-approved by KCHA s Workers Compensation & Liability Manager. The selected proposer shall file with the Contact Person a Certificate(s) of Insurance stating the required coverages are in effect. 8. Additional Information: Include any other information you believe to be pertinent but not required. 9. Confidential Information: Confidential Information is defined as follows: Technical Information (i) Any trade secret, know-how, invention, software program, application, documentation, schematic, procedure, contract, information, knowledge, data, process, technique, design, drawing, program, formula or test data, work in progress, engineering, manufacturing, marketing, financial, sales, supplier, customer, employee, investor, or business information; 10

13 (ii) Any non-public business information, including, without limitation, personnel data; correspondence with governmental agencies; historical customer information and data; historical cost information such as budgets and operating expenses and capital costs; and projected capital additions and operating cost information; Financial Information (i) (ii) financial statements, business plans, strategic plans, proprietary market information, analyses, compilations and any other strategic, competitively sensitive or proprietary information shared between the parties as a result of the discussions contemplated by this Agreement; this Agreement and all documents and materials relating thereto and to the negotiation and execution thereof, including, without limitation, the existence of this Agreement and the fact of negotiations taking place between the parties; and Business Development-Related Information (i) (ii) All trade secrets or proprietary information protected as intellectual property that relates to the business of the Proposer and is not generally available to the public, or generally known in the industry; Customers' identities and requirements, customer lists, suppliers' identities and products, pricing information, product price discount information, manufacturing processes and procedures, new product research, financial information not generally available to the public; and (iii) Any techniques, know how, processes or combinations thereof, or compilations of information, records and specifications, utilized or owned by the vendor regarding business development, marketing, pricing, business methods, strategies, financial or other analyses, policies or business opportunities. Proposers are cautioned that because KCHA is a public entity materials designated as confidential may nevertheless be subject to disclosure. Proposers are advised that KCHA does not wish to receive confidential or proprietary information and that proposers are not to supply such information except when it is absolutely necessary. IF CONFIDENTIAL INFORMATION IS SUBMITTED: 1. ALL CONFIDENTIAL INFORMATION MUST BE STAMPED WITH A CONFIDENTIAL WATERMARK AND PLACED IN A 11

14 SEPARATE TABBED SECTION #9 OF THE RFP MARKED CONFIDENTIAL. 2. Any documents labeled CONFIDENTIAL shall include the following statement signed and placed on the first page of the CONFIDENTIAL material: (legal name of proposer) shall indemnify, defend and hold harmless the Kern County Hospital Authority, its officers, agents and employees from and against any request, action or proceeding of any nature and any damages or liability of any nature, specifically including attorneys' fees awarded under the California Public Records Act (Government Code 6250 et seq.) arising out of, concerning or in any way involving any materials or information in this Proposal that (legal name of proposer) has labeled as confidential, proprietary or otherwise not subject to disclosure as a public record. By: Date: E. Post RFP Issuance 1. Questions a. Any and all questions must be submitted by prior to September 14, b. By September 21, 2017, an addendum will be issued with written responses to those questions where the answers may change the scope of services detailed in Exhibit A. Questions with content about the RFP process, where to send a response or other information not related to Exhibit A may be answered by the KCHA Contact Person as they are received. c. Subsequent to addenda: Questions received subsequent to the issuance of addenda and within the last week prior to the due date and time may be answered. KCHA will accommodate these last minute questions, but will not guarantee that they will be answered, if not submitted timely. F. Proposal Submission All Proposers must submit their proposals via to the listed KCHA Contact Person. The virus free attachment must be a standard Microsoft Windows (Word, Adobe, Excel, etc.) format readable by KCHA. Proposer agrees to be fully responsible for any damage caused by any materials submitted to KCHA. Please submit all Proposals to: 12

15 Kern Medical Center Department of Human Resources Name: Lori Ambrose Title: Director of Human Resources Address: 1700 Mt. Vernon Avenue, Bakersfield, CA Telephone (661) Proposals submitted after 5:30 p.m. on October 5, 2017 will not be accepted. Only one (1) Proposal may be submitted from each proposer. For purposes of this RFP, a Proposer is defined to include a parent corporation of the Proposer and any other subsidiary of that parent corporation. If a Proposer submits more than one (1) Proposal, all Proposals from that Proposer shall be rejected. RFP Proposals are not publicly opened. G. Withdrawal and Submission of Modified Proposal A Proposer may withdraw a Proposal at any time prior to the submission deadline by submitting a written notification of withdrawal signed by the Proposer or his/her authorized agent. Another Proposal may be submitted prior to the deadline. A Proposal may not be changed after the designated deadline for submission of Proposals. H. Disposition of Proposals and Proprietary Data All materials submitted in response to this RFP become the property of KCHA. Any and all Proposals received by KCHA shall be subject to public disclosure and inspection, except to the extent the Proposer designates trade secrets or other proprietary data to be confidential, after the selection committee has completed its deliberative process and either the Proposer(s) has been informed that they are not the Consultant selected by the selection committee for recommendation to the CEO and/or Board of Governors, or the matter has been set for consideration before the Board of Governors, whichever comes first. Material designated as proprietary or confidential shall accompany the Proposal and each page shall be clearly marked and readily separable from the Proposal in order to facilitate public inspection of the non-confidential portion of the Proposal. Prices, makes and models or catalog numbers of the items offered, deliverables, and terms of payment shall be publicly available regardless of any designation to the contrary. KCHA will endeavor to restrict distribution of material designated as confidential or proprietary to only those individuals involved in the review and analysis of the Proposals. 13

16 Exhibit A I. BACKGROUND a. On July 1, 2016, ownership of Kern Medical Center (Kern Medical) changed from the County of Kern to the Kern County Hospital Authority (KCHA). One of the many reasons for this change was to give Kern Medical an opportunity to be more flexible and move more quickly under its own governing board in order to compete more effectively in the ever-changing world of healthcare. b. Since July 1, 2016, KCHA has been systematically reviewing each of its systems, departments, policies, and procedures to streamline processes and make Kern Medical as efficient and productive as possible with the limited available resources. c. This RFP is to have the current retirement system and other possible retirement systems analyzed and reviewed to determine whether or not KCHA is using the best plan for its goals and objectives. II. III. IV. DESIRED OBJECTIVE(S) Part 1 Goal is to evaluate alternatives to current KCERA pension plan that will ultimately result in lower costs to KCHA without significantly decreasing the benefit to the employees. The intent is for the approved retirement solution to become effective for new employees only who begin employment with KCHA on or after July 1, No migration of existing pension plan participants is planned. Part 2 Goal is to provide plan administrative services to retirement plan participants on or after July 1, ESTIMATED VALUE/COST Provide a general outline of the estimated budget or value/cost of proposed services DESCRIPTION AND SCOPE OF WORK The following is a general outline of the Description and Scope of Work that will be required. It is anticipated that the final scope of work will be a product created through the negotiation process with changes based upon the professional input from the selected consultants. Part 1 A. Actuarial Audit 1) Review, audit and validate valuation reports on KCERA pension plan, provided by Segal & Associates as of June 30, 2016 to include but not limited to validation of employer pension liability, plan fiduciary net position, net pension liability, pension expense, cost to value ratio analysis, and financial impact of freezing plan as of June 30, Deliverables include: 14

17 a. Provide written summary to KCHA of audit findings, including any recommendations, actions or follow-up required. Include detailed analysis on impact to KCHA on impact of new plan to future KCERA employer pension obligation b. Timely response to questions from KCHA relative to audit findings c. Attend meetings to review audit findings with pension plan committee B. Retirement Solution(s) 1) Propose new retirement plan solution(s) and structure for new employees (hired on or after July 1, 2018) that results in cost savings over current pension plan(s); provide comparison if multiple solutions are recommended. Include examples of the following: a. Recommended employer match alternatives (include multiple match/design options resulting in various cost savings or cost neutral results without significantly reducing benefit to employees) C. Future Actuarial Services - Successful actuarial firm may be engaged to perform the following actuarial services for the final retirement solution on an annual or periodic basis: 1) Prepare actuarial valuation reports on an on-going basis for each oddnumbered year, beginning July 1, The reports include benefit information on all members in the plans as well as plan funding information. The valuation process should include a review of the actuarial assumptions as well as the plan s overall condition. 2) Audit KCERA valuation reports as needed to validate pension obligation 3) Respond to questions from KCHA relative to report results 4) Attend meetings as requested to review analysis and actuarial reports 5) Calculation of special benefit settlements involving terminations, early retirements, disability retirements and litigation cases. 6) Consult or evaluate special matters regarding KCHA members and KCERA matters 7) Available to assist in additional special studies for reporting and other purposes as directed by KCHA 8) Meet data security and other compliance requirements of KCHA Part 2 A. Plan administration services include the following services: 1) Detailed strategy for plan installation 2) Engagement with KCHA to recommend best plan investment options 3) Robust in-person, telephonic and on-line participant services highlighting features and benefits of plan and including participant education, investment guidance, and other on-going support. 15

18 4) Educational and investment marketing materials available for KCHA employees. 5) Articulated customer service standards when responding to both KCHA administrative personnel and plan participants 6) Ability to deliver on-site education periodically as needed; ability to meet in person with KCHA administrative staff to review plan performance, investment vehicle performance and other elements of plan administration, 7) Provide support in enrollment of new participants, processing of employee loans, retirements, terminations, etc. 8) On-going investment management services 9) Prepare or assist with preparation of plan documents including contracts and amendments; summary plan descriptions, summary annual reports, PBGC reporting requirements including form 5500, plan account balance statements, participant statements, and other plan marketing material for participants; 10) Employer contribution calculations, participant eligibility and vesting, excess contribution calculations, forfeitures, distribution reporting (hardship w/drawls, mandatory distributions), retirement distribution processing and related tax disclosure preparation 11) Meet data security and other compliance requirements of KCHA 12) Full array of tax and testing services applicable to the chosen plan design, trust accounting and reconciliation, and plan specification reporting V. DELIVERABLES Part 1 1) Comprehensive audit of most recent evaluation reports on completed by Segal & Associates; and 2) Proposal for a new retirement plan solution(s) for new employees that results in a cost savings over current retirement plan(s) without substantially decreasing benefits to employees; and 3) Outline of proposed actuarial services for the implemented KCHA retirement services on an annual or periodic basis. Part 2 1) Provide plan administrative services to retirement plan participants hired on or after July 1, VI. CONSULTANT REQUIREMENTS, METHODOLOGY, AND PERFORMANCE STANDARD The following are questions/requirements that should be addressed in the Proposal(s) PART I-ACTUARIAL SERVICES: 16

19 1. List the name and physical location of primary individual(s) who will be responsible for the account and provide brief biographies including titles, functions, academic credentials, and relevant experience. Identify and explain the role of back-up personnel. 2. List the number of clients assigned to each person that may be assigned to the KCHA account. What policies are in effect to control the workload as it relates to the number of clients serviced by each consultant? Is there a limit on the number of accounts that a Consultant may handle? 3. Confirm that all actuarial services relating to projections of the population in your proposal will be under the supervision of a member, of your organization, who is an enrolled actuary and member of the American Academy of Actuaries. 4. Provide the number of public agencies are currently serviced by your firm. How many years has your firm provided actuarial services to public pension plans and provided recommended alternatives? 5. Describe how your firm will work with KCHA to provide the requested services described in this Exhibit A. Detail your approach to communications, collaboration, competency and reliability. How will your team be made available for contact in a technical capacity? Please include detail that would address HIPAA compliance. 6. Include as an addendum item, a sample of your firm s actuarial reports. PART II-PLAN ADMINISTRATION: 1. How many years has your organization been administering 457 plans? 2. How many 457 plans and participants does your organization currently service? What percentage of your total clientele are public employers? 3. Does your firm provide defined benefit administration? Please describe services available related to defined benefit plan design and administration? 4. Describe how your firm will work with the KCHA to provide the requested services described this Exhibit. Detail your approach to communications, collaboration, competency and reliability. How will your team be made available for contact in a technical capacity? Please include detail that would address HIPAA compliance. 5. Describe both the employer and employee experience with your online education and solutions. What technology capabilities exist with your firm. 6. Describe education provided to plan participants. 17

20 APPLICABLE TO BOTH PARTS: 1. Describe the services of your organization that distinguish your firm from your competitors. Explain why your firm is the most qualified for this engagement. 2. Furnish your organization s history, legal form (sole proprietorship, partnership, corporation and state of incorporation), number and locations of offices, number of employees, days/hours of operation. 3. Disclose any conditions (e.g. bankruptcy or other financial problems, pending litigation, planned office closures, impending merger) that may affect your organization s ability to perform contractually. 4. Certify that your organization and any principal of the organization is not prohibited, suspended or otherwise declared as ineligible to contract or provide any services required hereunder by any federal, state or local public agency. 5. Describe how your organization is properly licensed, bonded and/or insured (both fidelity insurance and errors and omissions insurance). 6. Please provide a description of your firm s reporting capabilities. 7. Describe your firm s active involvement in, and ability to provide periodic updates regarding federal legislation, IRS Rules or Revenue Rulings and accounting/gasb rules that affect the operation of the system and the payment of benefits. 8. Describe the media your firm uses to inform clients of changes in pending federal legislation or regulations. VII. SECURITY REQUIREMENTS The following is a general outline of the Security and Information Technology Requirements required as part of this proposal 1. The successful proposer will be required to enter into a Business Associate s Agreement and indemnify KCHA for data/privacy breaches. 2. Possibly establish a secure website to allow for the transfer of sensitive information. 18

21 EXHIBIT B SAMPLE MASTER TERMS AND CONDITIONS 1. Term. The term of this Agreement shall commence on, 2017 (the Effective Date ), and shall end, unless earlier terminated pursuant to other provisions of this Agreement as herein stated. 2. Obligations of Consultant. 2.1 Specified Services. Consultant shall perform the services set forth in Exhibit A, attached hereto and incorporated herein by this reference. Such services may be changed from time to time by agreement of the parties in accordance with the provisions of this Agreement. 2.2 Representations. Consultant makes the following representations which are agreed to be material to and form a part of the inducement for this Agreement: (i) Consultant has the expertise and support staff necessary to provide the services described in this Agreement; and (ii) Consultant does not have any actual or potential interests adverse to KCHA nor does Consultant represent a person or firm with an interest adverse to KCHA with reference to the subject of this Agreement; and (iii) Consultant shall diligently provide all required services in a timely and professional manner in accordance with the terms and conditions set forth in this Agreement. 2.3 Standard of Care. KCHA has relied upon the professional ability and training of Consultant as a material inducement to enter into this Agreement. Consultant hereby agrees that all of its work will be performed and that its operations shall be conducted in accordance with generally accepted and applicable professional practices and standards as well as the requirements of applicable federal, state and local laws, it being understood that acceptance of Consultant s work by KCHA shall not operate as a waiver or release. 2.4 Performance Standard. Consultant shall perform all services hereunder in a manner consistent with the level of competency and standard of care normally observed by a person practicing in Consultant s profession. If KCHA determines that any of Consultant s work is not in accordance with such level of competency and standard of care, KCHA, in its sole discretion, shall have the right to do any or all of the following: (a) require Consultant to meet with KCHA to review the quality of the work and resolve matters of concern; (b) require Consultant to repeat the work at no additional charge until it is satisfactory; (c) terminate this Agreement pursuant to the provisions of section 39; or (d) pursue any and all other remedies at law or in equity. 2.5 Assigned Personnel. Consultant shall assign only competent personnel to perform the Services hereunder. In the event that at any time KCHA, in its sole discretion, desires the removal of any person or persons assigned by Consultant to perform the Services hereunder, Consultant shall remove such person or persons immediately upon receiving written notice from KCHA. 2.6 Taxes. Consultant agrees to file federal and state tax returns and pay all applicable taxes on amounts paid pursuant to this Agreement and shall be solely liable and 19

22 responsible to pay such taxes and other obligations, including, but not limited to, state and federal income and FICA taxes. Consultant agrees to indemnify and hold KCHA harmless from any liability which it may incur to the United States or to the state of California as a consequence of Consultant s failure to pay, when due, all such taxes and obligations. In case KCHA is audited for compliance regarding any withholding or other applicable taxes, Consultant agrees to furnish KCHA with proof of payment of taxes on these earnings. 2.7 Nonexclusive Services. Consultant understands and agrees that KCHA will utilize the services of Consultant pursuant to the terms of this Agreement on a non-exclusive basis. Consultant further agrees that KCHA shall retain the option to enter into agreements with other organizations for purposes of securing the services, in its sole discretion. 3. Obligations of KCHA. 3.1 KCHA Designee. KCHA will designate a primary contact, who will arrange for KMC staff assistance as may be required. 3.2 Control Retained in Kern Medical. In compliance with title 22, California Code of Regulations, section Kern Medical will retain professional and administrative responsibility for services rendered under this Agreement. Consultant shall apprise Kern Medical of recommendations, plans for implementation and continuing assessment through dated and signed reports which shall be retained by Kern Medical for follow-up action and evaluation of performance. 4. Payment for Services. 4.1 Fees and Charges. As consideration for the services provided by Consultant hereunder, KCHA will pay Consultant in accordance with the fee schedule set forth in Exhibit B, attached hereto and incorporated herein by this reference. All services are payable in arrears. 4.2 Invoices. Invoices for payment shall be submitted in a form approved by KCHA and list each service performed. Invoices and receipts shall be sent to KCHA for review and processing within 60 days of the date of service or payment will not be made. Payment shall be made to Consultant within 30 days of receipt and approval of each invoice by Kern Medical. 4.3 Maximum Payable. The maximum payable under this Agreement will not exceed $ over the year term of this Agreement. 4.4 Taxpayer Identification. To ensure compensation is reported as paid to the proper party, Consultant will complete and execute IRS Form W-9, which identifies the taxpayer identification number for Consultant. 5. Access to Books and Records. Until the expiration of four (4) years after the expiration or termination of this Agreement, Kern Medical and Consultant shall make available, upon written request of the Secretary of the United States Secretary of Health and Human Services 20

23 ( Secretary ) or the Comptroller General of the United States General Accounting Office ( Comptroller General ), or any of their duly authorized representatives, a copy of this Agreement and such books, documents and records of either party as are necessary to certify the nature and extent of costs of the services Consultant provided under this Agreement. Consultant further agrees that if it carries out any of its duties under this Agreement through a subcontract with a value or cost of $10,000 or more over a 12-month period with a related organization, that such subcontract shall contain a clause to the effect that until the expiration of four (4) years after the furnishing of such services pursuant to such subcontract, the related organization shall make available, upon written request of the Secretary or the Comptroller General, or any of their duly authorized representatives, the subcontract, and books, documents and records of such organization that are necessary to verify the nature and extent of such costs. 6. Anti-referral Laws. The parties expressly agree that nothing contained in this Agreement will require either the referral of any patients to, or order of any goods or services from Consultant or Kern Medical. Notwithstanding any unanticipated effect of any provision of this Agreement, neither party will knowingly or intentionally conduct itself in such a manner as to violate the prohibition against fraud and abuse in connection with the Medicare and Medicaid programs (42 U.S.C. section 1320a-7b). 7. Assignment. Consultant shall not assign, delegate, sublet, or transfer any interest in or duty under this Agreement. Consultant shall not assign any money due or which becomes due to Consultant under this Agreement without the prior written approval of KCHA. 8. Audits, Inspection and Retention of Records. Consultant agrees to maintain and make available to KCHA accurate books and records relative to all its activities under this Agreement. Consultant shall permit KCHA to audit, examine and make excerpts and transcripts from such records, and to conduct audits or reviews of all invoices, materials, records or personnel or other data related to all other matters covered by this Agreement. Consultant shall maintain such data and records in an accessible location and condition for a period of not less than four (4) years from the date of final payment under this Agreement, or until after the conclusion of any audit, whichever occurs last. The state of California or any federal agency having an interest in the subject of this Agreement shall have the same rights conferred upon KCHA herein. 9. Authority to Bind KCHA. It is understood that Consultant, in its performance of any and all duties under this Agreement, has no authority to bind KCHA to any agreements or undertakings. 10. Captions. The captions in this Agreement are solely for convenience of reference. They are not a part of this Agreement and shall have no effect on its construction or interpretation. 11. Change in Law. In the event that a change in state or federal law or regulatory requirement (or the application thereof), any of which renders this Agreement illegal, impossible to perform, or commercially impracticable, the parties agree to negotiate immediately, in good faith, any necessary or appropriate amendments(s) to the terms of this Agreement. If the parties fail to reach a mutually agreeable amendment within 30 days of such negotiation period, this Agreement shall automatically terminate at the end of such 30-day period. 21